The Combined Rate accounts for Federal, State, and Local tax rate on capital gains income, the 3.8 percent Surtax on capital gains and the marginal effect of Pease Limitations (which results in a tax rate increase of 1.18 percent). The Combined Rate does not account for New Mexico permitting of a 50% State deduction of Federally taxable capital gains.
New Mexico levies state taxes at rates ranging from 1.70% to 4.90%, assessed over progressive income brackets.
10600 Menaul Blvd. NE, Albuquerque NM 87112